Which of the following are true? (i) Book-keeping is not a systematic recording in the books of accounts of business transactions of a company up to the preparation of Trial Balance | (ii) Accounting is the process of book-keeping and reporting in final accounts together with intepretation of the affairs of the business | (iii) Book-keeping is equivalent to accounting | (iv) Two of the common book-keeping system used by businesses are Single-entry and Double-entry book-keeping systems.
Which of the following variations will cause the Accounting Equation to be correct? | (i) Assets +$5,000, Liabilities -$15,000, Owner's Equity -$20,000 | (ii) Assets -$6,000, Liabilities -$4,000, Owner's Equity -$2,000 | (iii) Liabilities -$4,000, Owner's Equity +$4,000 | (iv) Assets +$8,000, Owner's Equity -$8,000, Liabilities -$8,000
Mr. Wong has been in the business of buying and selling of furnitures for the past 20 years. Recently, his delivery van has broken down and so he sought to buy a new one. In the month of February there were only two transactions. He paid $20,000 for a new delivery van with cash. In addition, he also purchased $40,000 worth of furnitures on credit in anticipation of a huge demand for his furnitures. Which of the following accounts should be debited/credited? The options given are not necessarily paired up in accordance to their transaction. | (i) Credit Delivery Van $20,000, Credit Fixtures & Furnitures $40,000 | (ii) Debit Delivery Van $20,000, Credit Cash $20,000 | (iii) Debit Fixtures & Furnitures $40,000, Credit Accounts Payable $40,000 | (iv) Debit Purchases $40,000, Credit Cash $40,000 | (v) Debit Purchases $40,000, Debit Delivery Van $20,000
The Accounting Principle "Going Concern" suggests that all businesses are expected to _________?
Mr Chen's sales team just made a cash sale for the week which was worth $2,000. During that week, no other expenses were incurred. Mr Chen's company policy is to pay his salesmans' salary in cash on a monthly basis. Under the accrual accounting and cash accounting, his profit for the week is _______ & ________ respectively?
I have just paid $12,000 in cash for the entire year's rental. 3 months have passed. How much rental expense have I incurred so far? What accounts should be involved?